SSC MTS 6 Aug 2019 Shift 1 Paper

Question : 35 of 100

Marks: +1, -0

A sum of Rs. 3000 is invested on compound interest (compounded annually) at the rate of interest is 20% per annum. What is the compound interest for 2 years?

Rs. 1440
Rs. 1320
Rs. 1200
Rs. 1360

Validate

Solution:

Compound interest = principal × [(1 + r/100)

^2

- 1]
⇒ Compound interest = 3000 [(1 + 20/100)2 - 1] = 3000[(36/25) - 1] = 3000 × 11/25
⇒ Compound interest = Rs. 1320
∴ The compound interest for 2 years is Rs. 1320.
Alternate Solution:
Rate = 20% = 1/5

Compound interest = 600 + 600 + 120 = Rs. 1320

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